Last summer, TE Connectivity announced its intention to acquire components maker First Sensor. On March 12, the two companies confirmed the takeover has been completed. The Swiss corporation paid €117 million ($129.59 million) to bring the German firm under its corporate umbrella.
First Sensor’s Background
Founded in 1990, the Berlin-based First Sensor specializes in designing and producing sensor systems for industrial, medical, and automotive applications. In particular, the firm worked to build both standardized and customized photonic, pressure, and advanced electronic components.
In addition to six domestic facilities, the firm established production capacity and sales sites in Britain, Canada, China, Denmark, France, the Netherlands, Sweden, and the United States. The firm went public with a listing on the Frankfurt Stock Exchange in 1999.
Although the German company has yet to post earnings statements for 2019, it performed well the year prior.
First, Sensor earned €7.5 million ($8.3 million) in profit against revenue of €155.1 million ($171.75 million) in 2018. The company’s industrial segment proved to be its most lucrative, generating €80.4 million ($89.03 million), up 7 percent year-over-year. The firm also saw significant growth in its medical unit, which made €34.6 million ($38.31 million) in sales, a year-over-year increase of 24 percent.
Why TE Bought First Sensor
In a press release, TE explained it purchased First Sensor to enhance its competencies and portfolio. Recently, the Swiss corporation has worked to expand its footprint within the sensors market. With its latest acquisition, the company further diversified its holdings and added significant new design expertise to its brain trust.
Last month, The Burn-In reported TE exceeded even the high end of its fiscal first-quarter earnings expectations. The firm recorded $3.168 billion in revenue against earnings of $1.14 per share. CEO Terrence Curtin said the company’s better-than-expected performance was due to brisk sales of its industrial sensors.
By adding First Sensor as a subsidiary, the corporation will be able to increase sales by expanding into new markets. Indeed, TE noted that merging with the German firm will allow it to offer optical sensors with automobile, heavy truck, and industrial applications.
The Swiss headquartered firm hopes to develop new sensing systems in tandem with its newly acquired staff. “The First Sensor team’s capabilities, as well as their products, strongly align with the markets we serve and create greater opportunity to serve our customers,” said TE senior vice president John Mitchell.
With its recent production capacity increase in Morocco and the purchase of First Sensor, TE has set itself up for great success in 2020 and beyond.